Stock Market News For October 27, 2016

Benchmarks closed mostly lower on Wednesday amid mixed quarterly results. Drop in Apple’s share weighed on the S&P 500 and the Nasdaq. For the third consecutive quarter, the iPhone maker registered declines in both income and revenues on a year over year basis.

Meanwhile, the Dow bucked the bearish trend and ended in the green. The blue-chip index was buoyed by a jump in Boeing’s quarterly profits despite slower sales. While Apple (NASDAQ:AAPL) notched its biggest daily percentage loss since Sept. 9, Boeing’s shares hit their highest level since Dec. 31.

For a look at the issues currently facing the markets, make sure to read today’s Ahead of Wall Street article.

The Dow Jones Industrial Average (DJI) gained 0.2%, to close at 18,199.33. The S&P 500, on the other hand, fell 0.2% to close at 2,139.43. The tech-laden Nasdaq Composite Index closed at 5,250.27, decreasing 0.6%. The fear-gauge CBOE Volatility Index (VIX) advanced 5.8% to settle at 14.24. A total of around 6.6 billion shares were traded on Wednesday, lower than the last 20-session average of 6.4 billion shares. Decliners outpaced advancing stocks on the NYSE. For 62% stocks that declined, 35% advanced.

Apple Weighs on Wall Street

Apple Inc.’s (AAPL) fiscal fourth quarter earnings per share of $1.67, surpassed the Zacks Consensus Estimate of $1.66. Revenues also beat expectations, coming in at $46.852 billion. Both the top and bottom line, however, fell significantly from the prior year’s numbers, down 9.9% and 15%, respectively. This marks the third consecutive quarter in which both income and revenue were down year-over-year.

Growth in the smartphone market is slowing down, while consumer buying habits are also constantly changing. Shares of the iPhone maker slipped 2.3%, which eventually weighed on the broader markets (read more: Why is Apple Stock Falling 3% Today?).

The broader Technology Select Sector SPDR (XLK) declined 0.6%. Key holdings including Microsoft Corporation (NASDAQ:MSFT) (MSFT), AT&T Inc (NYSE:T). (T) and Google Inc (NASDAQ:GOOGL) (GOOGL) decreased 0.6%, 0.7% and 0.8%, respectively. All these companies possess a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Boeing Boosts Dow

The Boeing Company (NYSE:BA) (BA) reported adjusted earnings of $3.51 per share for the third-quarter, beating the Zacks Consensus Estimate of $2.62. Reported earnings were also up 39.3% from the year-ago figure of $2.52. Boeing’s revenues amounted to $23.90 billion in the reported quarter, beating the Zacks Consensus Estimate of $23.46 billion by 1.8%. The reported figure, however, declined 7.5% year over year.

Coming to guidance, Boeing raised its earnings per share expectation for 2016 to the range of $6.80–$7.00 from $6.10–$6.30 expected earlier. The company also raised its 2016 revenue guidance to the range of $93.5−$95.5 billion from the prior guidance of $93−$95 billion. Shares of the aerospace giant soared 4.7%, which eventually lifted the Dow (read more: Boeing Beats on Q3 Earnings & Revenues, Lifts View).

New Home Sales Up in September

Sales of newly built homes increased 3.1% in September from the prior month to a seasonally adjusted annual rate of 593,000, according to the Commerce Department. Sales in September were 29.8% higher compared to a year ago.

A slew of factors including wage gains, increase in job additions, record low mortgage rates and positive demographics had a positive impact on new home sales. Still, the recent pace of new home sales is almost half the peak rate reached in 2005.

Stocks That Made Headlines

Simon Property Beats Q3 FFO & Revenues, Guides Up

Simon Property Group, Inc. (SPG) reported third-quarter 2016 funds from operations of $2.70 per share, up from the year-ago quarter tally of $2.54 (Read More)

Franklin Resources (NYSE:BEN) Tops Q4 Earnings, Expenses Fall

Franklin Resources, Inc. (BEN) recorded a solid positive earnings surprise of 18.8% in fiscal fourth-quarter 2016. (Read More)

Colgate Q3 Earnings Meet; Stock Down on Dismal Sales

Colgate-Palmolive Co. (CL) posted in-line earnings in third-quarter 2016, thus maintaining its trend of beating and meeting estimates in alternate quarters for the fifth straight time. (Read More)

American Tower Beats Q3 Earnings; Raises '16 View

American Tower Corp. (AMT) reported strong financial numbers in the third quarter of 2016, with both the top and the bottom line outpacing the Zacks Consensus Estimate. (Read More)

Deutsche Bank's Q3 Earnings Impress on Lower Costs

Surprising markets, Deutsche Bank AG (DE:DBKGn) (DB) reported net income of €278 million ($310.2 million) in third-quarter 2016, compared to a loss of €6 billion ($6.70 billion) in the prior-year period. (Read More)

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APPLE INC (AAPL): Free Stock Analysis Report

MICROSOFT CORP (MSFT): Free Stock Analysis Report

AT&T INC (T): Free Stock Analysis Report

ALPHABET INC-A (GOOGL): Free Stock Analysis Report

BOEING CO (BA): Free Stock Analysis Report

SIMON PROPERTY (SPG): Free Stock Analysis Report

FRANKLIN RESOUR (BEN): Free Stock Analysis Report

COLGATE PALMOLI (CL): Free Stock Analysis Report

AMER TOWER CORP (AMT): Free Stock Analysis Report

DEUTSCHE BK AG (DB): Free Stock Analysis Report

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